PT  - JOURNAL ARTICLE
AU  - Michael Keppler
AU  - Peter Encinosa
TI  - How Attractive Are Emerging Markets Equities? <em>The Importance of Price/Book-Value Ratios for Future Returns</em>
AID  - 10.3905/joi.2017.26.1.117
DP  - 2017 Feb 28
TA  - The Journal of Investing
PG  - 117--121
VI  - 26
IP  - 1
4099  - https://pm-research.com/content/26/1/117.short
4100  - https://pm-research.com/content/26/1/117.full
AB  - Emerging markets have long offered attractive characteristics compared to developed markets. The authors show the negative relationship between the price/book-value ratios of the MSCI Emerging Markets Index and the ensuing four-year annualized total net returns. Low valuations are associated with high future returns and, vice versa, high valuations tend to lead to lower returns. Although the expected total returns are promising, there are some caveats of which investors should be aware.TOPICS: Emerging, fundamental equity analysis